Plan to open a retirement account

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Reference no: EM131307811

You plan to open a retirement account. Your employer will match 50% of your deposits up to a limit on the match of $2, 500 per year. You believe the retirement account will earn 12 % per year over the next 30 years. You will make 30 deposits of $5,000 each year from your income and your employer will deposit 50% of each of your deposit into the same retirement account. Assume that the retirement account has $1.8million after your last deposit. If you want to make 30 yearly withdrawals from it, starting 1 year after the last deposit, what amount will you be able to withdraw each year?

Reference no: EM131307811

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